Explainer-Why is British horse racing going on strike?

LONDON :No horse racing will take place in Britain on September 10 as jockeys, trainers and racecourses stage their first strike, protesting a government plan to raise taxes on remote bets. The stoppage marks the first time the sport has voluntarily halted racing in its history.

WHAT IS THE GOVERNMENT PROPOSING?

Britain's Treasury is consulting on proposals to harmonise three separate remote betting duties, a move that could lift the tax on horse racing wagers from 15 per cent to 21 per cent — in line with online casinos.

Finance minister Rachel Reeves needs to raise tens of billions of pounds in extra tax revenue in her second annual budget on November 26 but Labour pledged not to raise the main rates of the government's biggest sources of revenue - income tax, national insurance contributions and value-added tax - meaning she is expected to look elsewhere.

Betting operators are concerned any harmonisation will raise tax rates to align with higher ones, damaging sports like racing which currently enjoys a lower rate. 

WHY IS BETTING SO IMPORTANT TO RACING?

Horse racing in Britain receives much of its funding from a levy paid by bookmakers on their profits. In 2025 this is expected to amount to 108 million pounds ($146.59 million) and helps fund everything from prize money to industry recruitment and breeding operations. 

When taken along with media rights and sponsorship, betting operators contribute over 350 million pounds annually to British Racing, the Betting and Gaming Council says. As a comparison, the English Football League receives 40 million pounds from betting companies.

The racing industry says any hits to betting company profits will mean bookmakers pass less money on to the sport. Betting companies agree.  

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